Teavana

Last updated

Teavana Corporation
Company type Subsidiary
Industry Beverage
Founded1997;27 years ago (1997)
Phipps Plaza
Atlanta, Georgia, U.S.
Defunct2018;6 years ago (2018)
FateClosed from all Simon malls.
Headquarters2401 Utah Avenue South,
Seattle, Washington
,
U.S.
Products Loose-Leaf Tea
Made-to-order tea beverages
Tea-Related Products
Parent Starbucks (2012–present)

Teavana Corporation was an American tea company, which previously had locations throughout the United States, Canada, Mexico, and the Middle East. [1] Starbucks acquired Teavana in 2012, and in 2017, Starbucks announced it would close all Teavana locations by 2018. As of 2022, a very limited variety of Teavana products continue to be sold at Starbucks. [2]

Contents

History

The New York Stock Exchange on July 28, 2011, when Teavana had its initial public offering, which raised roughly $121 million Teavana NYSE 2011 Shankbone.jpg
The New York Stock Exchange on July 28, 2011, when Teavana had its initial public offering, which raised roughly $121 million

Teavana was started in Atlanta, Georgia, in 1997, with the opening of a teahouse at Phipps Plaza. [3] Teavana was founded by Andrew T. Mack, and his wife, who invested their life savings into the business. [4] Their idea was inspired by a road trip, noticing the gravitation of Americans towards fine wines and coffees in the United States. [5]

In late 2012, Starbucks stated that it would pay $620 million in cash to buy the company. [6] Three class-action lawsuits were commenced by shareholders of Teavana concerning the Starbucks buyout; these were settled on December 14, 2012 (subject to court approval). [7] The acquisition of Teavana by Starbucks was formally closed on December 31, 2012. [2] [8] On July 27, 2017, Starbucks announced it would close all 379 Teavana stores by 2018, partly due to underperformance. [9] [10]

Simon Property Group, one of the largest U.S. mall operators, demanded Starbucks keep running the Teavana shops located in its malls, arguing in part that their closing would reduce traffic to surrounding stores and in December 2017 a judge ruled in Simon's favor. [11] On September 15, 2017, Cadillac Fairview sued Starbucks over Teavana closures in Canada. [12]

However, on January 18, 2018, Simon and Starbucks reached an agreement that would close the remaining 77 Teavana stores in Simon malls, ending the tea shop's existence as independent storefronts after nearly 21 years in business. [13]

Products

Teavana offered hot tea sachets and premade iced tea which are sold at Starbucks locations, as well as at supermarkets and external retailers where tea is sold.

Prior to the closure of all of their storefront locations, Teavana's retail stores were usually located in upscale shopping malls and designed to be "part tea bar, part tea emporium." [14] Individual cups of tea to go were offered for sale, and the retail locations offered free samples of various tea blends and tea varieties at their front door and within the store. Accessories for tea-drinking, such as cups and pots were also available in the stores. [15]

Teavana previously offered loose-leaf teas and herbal infusions, with tea categories such as: white, black, green, flavored & scented green, "blooming" white, flavored & scented black, oolong, and pu-erh teas, along with rooibos, herbal, organic matcha green tea, blooming tea, and Yerba Maté infusions. Teavana retail stores had previously offered various blends of each type of tea, and frequently promoted cross-blending different types of tea. [16] Teas were offered in several formats, such as loose-leaf tea, pre-filled tea tins, and tea sachets, or brewed as a to-go beverage.

In addition to loose tea, Teavana sold teaware products, including cast iron Tetsubin teapots, Bone China teapots, Japanese porcelain teapots and cups, stove-top kettles, electric kettles, milk frothers and automatic tea makers (produced by Australian company Breville), Japanese hot water dispensers and electric tea makers (produced by Zojirushi), tea measures, tea infusion and steeping wares such as the Teavana 'Perfectea Maker', contour tumblers, and tea infuser mugs. Teavana also sold all-natural rock sugar (non-GMO beet sugar) sourced from Belgium. [17]

Teavana in Nashville, Tennessee, as shown in 2008 Teavana Nashville.jpg
Teavana in Nashville, Tennessee, as shown in 2008

Philanthropy

Supporting education

In April 2014, Starbucks and Teavana collaborated with Oprah Winfrey to develop a tea called Teavana Oprah Chai Tea, along with additional tea accessories. For every sale of Oprah Chai Tea products, Starbucks would make a donation to the Oprah Winfrey Leadership Foundation Academy, which supports youth education and funds the Oprah Winfrey Leadership Academy for Girls in South Africa. [18] Teavana and Starbucks have raised $5M in support of education for young people with the chai tea. In result of the partnership, Teavana then partnered with the New York-based organization Girls, Inc. to further support youth education and mentorship. [19]

Teavana and Starbucks also had a program to assist employees in enrolling with Arizona State online classes through their College Achievement Plan. [19]

Ethical tea partnership

On April 1, 2015, Teavana joined the Ethical Tea Partnership (ETP), an initiative that ensures ethical production and distribution of tea products, by "factory health and safety, safe use of agrochemicals, human resource management, and environmental management." The ETP also monitors for issues that cannot be tracked with audits and certification, such as discrimination and living conditions of the workers. [20]

See also

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References

  1. ↑ "Map of retail locations". Teavana. Archived from the original on May 3, 2011. Retrieved May 3, 2011.
  2. 1 2 Allison, Melissa (December 31, 2012). "Starbucks closes Teavana deal". The Seattle Times. Retrieved March 1, 2013.
  3. ↑ SanSone, Arricca Elin; Frere, Jackie; Chilton, Charlotte (October 4, 2019). "The Iconic Stores You Grew up With That Are No Longer Around". Good Housekeeping. Retrieved April 6, 2020.
  4. ↑ Holden, Ronald. "Starbucks Shutters All 379 Teavana Stores". Forbes. Retrieved April 6, 2020.
  5. ↑ Rubner, Justin (February 7, 2005). "Leaves of Green". Atlanta Business Chronicle. Retrieved January 3, 2019.
  6. ↑ Choi, Candice (November 15, 2012). "Starbucks Buys Teavana". Huffington Post. Archived from the original on November 18, 2012.
  7. ↑ Gasparro, Annie (December 14, 2012). "Teavana Reaches Settlement With Shareholders Over Starbucks Deal". Deal Journal. Wall Street Journal. Retrieved March 1, 2013.
  8. ↑ "Starbucks Closes Teavana Acquisition" (Press release). Starbucks Newsroom. December 31, 2012. Archived from the original on March 5, 2013. Retrieved March 1, 2013.
  9. ↑ "Starbucks is shutting all Teavana stores". Los Angeles Times . Associated Press. July 27, 2017. Retrieved January 3, 2019.
  10. ↑ Hirsch, Lauren (November 2, 2017). "Starbucks tanks on revenue miss, to sell Tazo tea brand to Unilever". CNBC. Retrieved November 3, 2017.
  11. ↑ Peterson, Hayley (January 1, 2018). "A tsunami of store closings is about to hit the US — and it's expected to eclipse the retail carnage of 2017". Business Insider. Retrieved January 3, 2019.
  12. ↑ "Cadillac Fairview Sues Starbucks Over Teavana Closures". Retail Insider. September 18, 2017. Retrieved January 11, 2018.
  13. ↑ "Starbucks and Simon Reach Agreement in Teavana Store Closure Dispute". Commercial Observer. January 18, 2018. Retrieved January 21, 2018.
  14. ↑ "About Us". Teavana. Archived from the original on March 2, 2010. Retrieved October 13, 2011.
  15. ↑ Taylor, Kate. "Starbucks is the latest victim of the retail apocalypse". Business Insider. Retrieved April 6, 2020.
  16. ↑ "Teavanna Tea Blends". Archived from the original on November 13, 2013. Retrieved October 23, 2013.
  17. ↑ "Teavana® Belgian Rock Sugar 1 Lb". Teavana Store. Archived from the original on January 12, 2018. Retrieved January 11, 2018.
  18. ↑ "Teavana Oprah Chai Tea Debuts at Starbucks and Teavana Stores in the U.S. and Canada". Starbucks Stories. April 29, 2014. Archived from the original on April 19, 2021. Retrieved November 18, 2022.
  19. 1 2 "Giving Back". Teavana. Archived from the original on November 6, 2016. Retrieved November 3, 2016.
  20. ↑ "What We Do". Ethical Tea Partnership. Retrieved November 8, 2016.
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